All Forum Posts by: Daniel G.

@Matt McCourry Hi Matt, I know what you mean. Multifamily deals are all on a "it depends" basis. This property would stabilized with regards to occupancy and expenses. I would be looking for value-add opportunities mainly through continuing renovation as well as the addition of washer/dryer connections, among other things. The investor expectation would be more than anything a long term cash flow, so yes there would be CF distributions.

I appreciate your tip on raising funds once. I know, it's every syndicators worst nightmare to go ask for more money after closing a round of funding. Do you have any methods to determine somewhat of a safety-net that would prevent this for happening? For example, you would raise x% of EGI to have year 1 net working capital?

Any other input would be awesome, thanks Matt.

@Nick B. First of all thank you for taking the time to respond. I must say that you made some bold assumptions. I cannot blame you for this due to the lack of information that I provided for you to feed on. You're assuming that I have no experience, in fact you stated it. You also assumed that I wouldn't be putting any money for the deal, I am. You also assumed that I need to find a co-sponsor. I do have a co-sponsor. He has a roughly 4,000 unit portfolio in Central Texas and a 600 unit property in your very own market.

I wanted to correct your assumptions to prevent other readers from assuming that they are true. This happens in the internet quite a lot.

Thank you for your feedback nonetheless. I appreciate the reminder of the common obstacles that are found for syndicators in this business.

Hi everyone, I like to ask questions with some regularity to keep abreast of what my peers are doing in the multifamily syndication business. I'm looking to syndicate a deal for the acquisition of a 80-110 unit property, worth $2-5M, located in central Texas. I'm currently in the planning and underwriting stages and have scheduled to go raise funds with private investors within a month from now.

My question asks what your preferences are in regards to some common components of the PPM and overall strategy. I'll post them in bullet pt. form to make things a little easier to follow.

• Do you give investors a preferred rate of return? If so, what rate?
• What % do you charge for asset management fee?
• What compensation plan do you have structured for the deal? ( carried interest, hurdle rate, after 100% return, etc.)
• Do you allow the transferability of partnership interests, if so, how do you determine their value?
• Do you provide a capital calls provision on your PPM should you need additional funds?
• When you raise funds do you ask for working capital as well?
• Do you offer quarterly, semiannual distributions?
• What offers, services, or perks of any kind do your investors find most attractive?
• What are some common "low hanging fruits" that you have found limited partners like to hear when you pitch to them?

Any how, I thank you in advance. I know it's a lot of questions but that's what forums are for. I want to collaborate and soak myself with as much of your wisdom as I possibly can.

@Anthony Chara Thank you very much, I appreciate your input.

Thank you Bryan, I really appreciate your very valuable input,

 Thank you Anthony, I would really appreciate it. 

@Jon Holdman I can't thank you enough. This is really great stuff.

 Thank you for providing me with your knowledge. You mentioned that your students have come up with a formula to buy-out the investors should they want out early. Could you please elaborate on that? I am assuming that you're referring to some sort of calculation in which you use the fair market value of their interests and feed into some sort of discount or premium to derive an exit value. I am probably wrong, but is there anyway you could expand on that concept? It sounds quite compelling. 

First of all, thank you Jon for taking the time to provide some input. 

How would you structure a loan for an investor assuming that they do have a 6-10 year timeline? Could you pay this investor the same preferred rate of return that all other equity investors are getting or does it have to be treated differently? Also, would this be allowed by loans that do not allow subordinate debt?

Under the appraisal method that you so kindly explained would I then simply buy them out of their partnership interest at the fair market value of their units? (Assuming I have the money to do so).